However, the Texas-based engineering-to-project management service
provider's per share profit was significantly higher than 4 cents
earned in the fourth quarter of 2011. The quarter's result was
positively influenced by favorable order activity in the
Asia-Pacific belt.

McDermott generated revenues of $996.0 million in the quarter, up
22.0% from the fourth quarter of 2011 and also ahead of our
expectation of $988.0 million. Better marine operations on a subsea
project in the Middle East and Atlantic regions boosted the
company's results.

On a reported basis, the company registered operating income of
$77.3 million (jumped 145.9% year over year) during the quarter.
Total costs and expenses also increased 17.10% from the
corresponding period last year to $913.0 million.

Backlog

At the end of the fourth quarter of 2012, McDermott had a backlog
of $5,067.2 million, compared with $3,881.1 million a year ago. As
of Sep 30, 2012, the backlog was $5,339.8 million.

Balance Sheet

As of Dec 31, 2012, McDermott had cash/cash equivalents of $640.1
million and long-term debt (including current maturities) of
approximately $102.7 million (representing a debt-to-capitalization
ratio of approximately 5.0%).

Zacks Rating

The company currently retains a Zacks Rank #2 (Buy), implying that
it is expected to outperform the broader U.S. equity market over
the next 1 to 3 months.

McDermott primarily serves the worldwide offshore oil and gas
field developments, including front-end design and detailed
engineering, fabrication and installation of offshore drilling and
production facilities, as well as installation of marine pipelines
and subsea production systems.

Additionally, the company provides project management and
procurement services. It operates in most of the major offshore oil
and gas producing regions, including the U.S., Mexico, Canada, the
Middle East, India, the Caspian Sea and Asia Pacific.

Apart from McDermott, there are some other energy firms that offer
value and are worth buying now. These include Range
Resources Corp. ( RRC ), Linn Co
LLC ( LNCO
) and Future Fuel Corp. ( FF ). All of these
stocks sport a Zacks Rank #1 (Strong Buy).